How Facebook earns its profits

How Facebook earns its profits




1 Facebook 2 How Facebook makes money 2.1 Advertisements 2.2 Applications and games 3 References Facebook Facebook is a social networking site that makes it easier for users to communicate and share with family and friends online . It was created in 2004 by Mark Zuckerberg while he was enrolled in Harvard University . Firstly, Facebook was designed specifically for university students, but by 2006, anyone had become He is more than 13 years old, and he has a valid email address to join Facebook, and today Facebook is the largest social network in the world with more than a billion users around the world. [1] How Facebook makes money Facebook achieved revenues of $ 40 billion in 2017, and most of it came from digital advertising, which brought in $ 39.9 billion, on the 25th of July 2018. The company announced results for the second quarter of the year that achieved profits of $ 13.2 billion, an increase of 42% compared to the period Same as last year. [2] Ads Facebook has emerged as one of the companies that dominated the field of digital advertising, which enables advertisers to display ads based on user searches. Here are some types of ads that enabled the company to reap huge profits: [2] Targeted Advertising: Advertisers can use personal data about users from Facebook for ads, and they can also divide the areas where users live into segments, target these users, and promote their brand by displaying customized ads for them based on gender, religion, or political affiliation, and pays Advertisers for Facebook to deliver their products to the right customers, called targeted ads. Video clips: A Facebook company is preparing in the future to expand its income sources through the field of video publishing and direct broadcasting (Facebook Live), where the daily watch time for direct broadcasts increased four times compared to 2017, in addition to creating video ads on the live broadcast platform (Facebook Live), and Facebook has signed business deals with other video content makers such as Buzzfeed and Vox, Message announcements: Another area of ​​continued growth in Facebook is the messaging service through the messenger application that recently started displaying ads. Direct messages enable users to chat directly with companies where more than 2 billion messages were exchanged between users in the fourth quarter of in 2017, the company Facebook and has developed its influence in the area where the messages in 2014 purchased the application and chat Alwatsab (WhatsApp) compared to $ 19 billion. Facebook on mobile phones: In 2016, the Facebook mobile application achieved 83% of advertising revenue, which made the mobile phone the largest digital tool for the money industry, with Facebook continuing to explore new advertising platforms, but expectations indicate that mobile phone advertising bears the burden Company revenue as it is growing at a double rate. [3] Self-serve advertising: This type of ads is widely used on Facebook as self-serving ads allow anyone to create an ad and display it on Facebook, these ads appear on the right side of Facebook pages, and the Ad Manager page helps advertisers to Create their own ads and provide targeting tools for Facebook users to ensure the ad reaches the target audience. [3] Applications and games Although it is difficult to obtain specific numbers, it was estimated that Facebook earns $ 84 from each of its North American users, and $ 27 from each of its European users, and from the United States and Canada market comes about $ 81 of this revenue from Advertising, Facebook revenue is directly dependent on 2.2 billion users using this site, and the market value of Facebook is 450 billion dollars and its share price is trading in the range of 155 dollars, in addition to the ability to collect funds from multiple sources from applications and other sites connected with Facebook, which contributes to you None of them is in the company's profits or is expected to be done in the near future: [3] Facebook Payments: This activity generates money through payments such as peer-to-peer payment systems such as Venmo. (Jibbigo): This application allows the translation of conversations into different languages, and thus enables companies to advertise their products in several languages as a major attraction in both the digital and global economy. Atlas Solutions: The Atlas system, purchased with Facebook in 2013, enables advertisers to monitor their social media programs effectively. (Instagram): It was purchased in 2012 for a billion dollars, and this app has 400 million users, and is expected to be a huge base engine for Facebook in the thriving digital market for photo applications. WhatsApp: It was purchased for $ 19 billion in 2014, making it the largest acquisition of the company in recent years, and this application is a very popular instant messaging platform that advertisers love, due to its widespread use not only in the United States, but Also around the world, Facebook is promoting a new business model that imposes advertisers a fixed price on communicating with customers of this app. Games and in-app payments: In 2017, Facebook earned $ 711 million in paid services such as in-app desktop game purchases. [4]


تعليقات